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As part of the deal, Menzies will retain a 10 per cent equity stake in the business, with Menzies Distribution continuing to fund part of the Menzies defined benefit pension scheme, amounting to 17 per cent of the assets and liabilities of the scheme.

The Menzies board believes the move will focus its capital resources on expanding in the growing aviation market.

It said that Menzies Aviation remains on track to deliver its full year expectations. It said that there were continuing labour issues in North America but they were being addressed and were “more than offset by positive trading and continuing contract gain momentum across the rest of the network.”

It added that net debt was in line with expectations.

Menzies will announce its interim results for the half year ended 30 June on 14 August.

After the sale Forsyth Black, who is currently president and managing director of Menzies Aviation will become chief executive of John Menzies plc.

He will be supported by Giles Wilson, chief financial officer and John Geddes, group company secretary and corporate affairs director.

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Dr Dermot F Smurfit, chairman of John Menzies plc, said: "I am delighted to announce today the sale of Menzies Distribution. In doing so we create a pure play aviation services business that operates in a structural growth market and is very well placed to take advantage of the many exciting opportunities that exist.

"In his role as Menzies CEO, Forsyth Black will now focus on growing our market share in the aviation services market, increasing our operating margins and continuing to deliver excellent services to our customers."